National Equipment Appraisal

USPAP 2012-2013 FAQ

Each month we'll post a FAQ (frequently asked question) from the current 2012-2013 USPAP book. 

QUESTION: What is the difference between a client and an intended user?

RESPONSE: The term client is defined in the definitions section as:

The party or parties who engage, by employment or contract, an appraiser in a specific assignment.

 Intended users are identified by the appraiser through communication with client and are not established based on who might receive or use the report.

The definition of intended user has a specific meaning in USPAP.  In the context of the USPAP definition of intended user, the fact that the IRS, the court, an independent auditor, or others will use your report for review, audit, or other purposes does not automatically make them intended users.  These parties receive the report through established processes of disclosure or regulation.

One way to understand the concept is to think about what the intended use is for each party.  The appraiser must identify both the intended users and the intended use of the appraisal, because these two factors affect many aspects of the appraisal assignment, such as the appropriate scope of work and the appropriate type of report.

As indicated in Statement on Appraisal Standards No. 9 (SMT-9), Identification of Intended Use and Intended User:

Parties who receive a copy of an appraisal, appraisal review, or appraisal consulting report as a consequence of disclosure requirements applicable to an appraiser's client do not become intended users of the report unless they were specifically identified by the appraiser at the time of the assignment.

source: nebb institute

Used Car Prices up 20% this Year

As gas prices continue rising, so too do the sticker prices for used vehicles.

According to Kelley Blue Book's market report for May 2011, used vehicles are more expensive now than they have ever been, with rising prices fueled primarily by rising demand.

KBB reports that since January of this year, values are up 20 percent, which translates to between $1,500 and $2,500 more per model.

Alec Gutierrez, manager of vehicle valuation for KBB, said rising gas prices are also increasing the value of used cars, but relief may not be far off.

"Mid-to-late summer, gas prices are expected to decrease and when they do, values for many of these fuel-efficient models are expected to drop," said Gutierrez.

Gutierrez went on to say that becaus vehicle values are expected to drop, people who are considering selling their used hybrids would be wise to sell them now rather than waiting.

Until then, KBB reports the used vehicle with the biggest price disparity since April 2007 is the Toyota 4Runner, with the average trade-in value jumping $7,500 in four years.

Auto Insurance rates for used models vary from year to year, but in comparison to newer models, pre-owned vehicles are always less costly to insure.

Article Source: US Insurance Online, May 9, 2011

Used Equipment Prices are Rising.

We recently conducted an informal survey of several machinery and equipment dealers and were delighted in what we heard. Almost unanimously we found a positive outlook for used equipment values.

Our survey was limited to heavy machinery dealers specializing in in metal fabrication.

For the last couple of years, original equipment manufacturers (OEM) have been building fewer machines because of lack of demand. New machinery that was purchased usually came from existing inventories and today, the stock of new machinery is the lowest it's been for years.

It appears demand is picking up as the manufacturing economy improves. Companies that need equipment today can't wait for the OEM's longer lead times and turn instead to dealers with late model used equipment on hand. Supplies are low, demand is increasing ... Prices are rising, it's a classsic example of economics 101.

You may not be aware that National Equipment Appraisal has a large database of Cooperating Used Equipment Dealers and several listed buyers looking for good quality used equipment. We are specialists in equipment sourcing and may be able to save you money in your next acquisition.